Story image

Public cloud drives double digit growth of IT infrastructure revenues

04 Apr 18

The worldwide cloud IT infrastructure market is in good stead following widespread adoption of public cloud.

This is according to the International Data Corporation, who reports vendor revenue from sale of infrastructure products (server, storage, and Ethernet switch) for cloud IT including public and private to have grown 27.3 percent year over year in the fourth quarter of 2017 (4Q17), reaching US$12.8 billion.

For the whole of 2017, combined public and private cloud deployments continued their healthy double-digit annual growth experienced in the past few years with revenues reaching $43.4 billion for 21.7 percent year-over-year growth.

IDC says public cloud infrastructure is one of the main drivers of this growth after almost doubling in the past two years to reach $8.5 billion in 2017, growing 34 percent year over year in 4Q17.

Private cloud also experienced growth albeit at a slower rate, reaching $4.3 billion with an annual increase of 15.7 percent. Total worldwide cloud IT infrastructure revenue in 2017 more than doubled when compared to 2013.

Cloud computing has certainly imposed its dominance upon the IT world with combined public and private cloud now accounting for 42.2 percent of the total worldwide IT infrastructure spending, up a whopping 39.3 percent from just a year ago.

Traditional (non-cloud) IT infrastructure revenue grew 12.8 percent from a year ago, although it has been generally declining over the past several years. At $17.5 billion in 4Q17 it still represents 57.8 percent of total worldwide IT infrastructure spending.

Share of the market was relatively spread out with Dell holding the largest piece of the pie followed by HPE, Cisco, Huawei and IBM.

"2017 finished strong for public cloud IT infrastructure growth, led by continued expansion by Amazon and renewed growth in Google and Facebook infrastructure," says IDC computing platforms research director Kuba Stolarski.

"While there has been high growth in all IT infrastructure segments lately, public cloud, led by the hyperscalers, has resulted in the largest share of infrastructure growth, which is expected to continue at this pace for at least a few more quarters."

Narrowing it down to global regions, not one area saw a decline. Latin America and Japan saw the slowest revenue rise with 6.2 percent and 4.8 percent respectively from a year ago. All other regions grew their cloud IT infrastructure revenue by double digits.

Asia/Pacific (excluding Japan) and Central and Eastern Europe (CEE) saw the fastest growth rates at 59 percent and 34.1 percent respectively. Canada (23.3 percent), Middle East & Africa (MEA) (27.5 percent) and USA (21.1 percent) had annual growth in the twenties, while Western Europe (16.6 percent) had annual growth in the teens. 

HPE building new supercomputer with €38m price tag
It will be installed at the High Performance Computing Center of the University of Stuttgart and will be the world's fastest for industrial production.
Study claims Denmark has been misled by hyperscale data centres
Despite repeated assurances from Danish ministers, almost none of the new hyperscale data centres are reusing their waste heat.
Workday – who are they and what do they do?
We quickly summarise everything you need to know about the up and coming business software leader.
Workday customers start deployments to AWS infrastructure
Business software vendor Workday has turned it's previously announced AWS partnership into a reality.
Cisco expands security capabilities of SD­-WAN portfolio
Until now, SD-­WAN solutions have forced IT to choose between application experience or security.
HPE launches new Datacenter Care capabilities
The company asserts the new capabilities will be delivered by HPE PointNext and will help businesses simplify complex IT environments.
Digital transformation an almost $2 trillion industry by 2022
"The unprecedented speed at which technologies are coming to market supporting DX strategies can only be described as frantic."
Eccellente! AWS building new data centres in Italy
The new infrastructure region is expected to be complete in early 2020 to enable customers to run workloads and store data in Italy with even lower latency.